Big Banks Join Together to Inject $30 Billion into First Republic Bank

Amidst the financial crisis in the banking sector, 11 of the largest banks have come together to inject a total of $30 billion into First Republic Bank.[0] Bank of America, Citigroup, JPMorgan Chase and Wells Fargo are each making a $5 billion uninsured deposit into First Republic, with Goldman Sachs and Morgan Stanley each making deposits of $2.5 billion, and BNY Mellon, PNC Bank, State Street, Truist and Bank each making a deposit of $1 billion.[1] This action reflects their confidence in the bank and in banks of all sizes, demonstrating their commitment to helping banks serve their customers and communities.[2]

The Dow’s day was marked by selling pressure in financial stocks, with regional bank stocks especially feeling the brunt of the blow. Western Alliance Bancorp, Comerica, Huntington Bancshares and Regions Financial were all down 1% or more.[3] The Treasury Secretary Janet Yellen reassured the Senate Finance Committee on Thursday that the banking system “remains sound” and Americans “can feel confident” about their deposits.[4]

The Federal Reserve’s decision on whether to raise interest rates by 25 basis points or not could depend on what happens in the coming days, said Nick Timiraos, chief economics correspondent at The Wall Street Journal.[5] Meanwhile, the S&P 500 is down 1.5%, despite Credit Suisse and First Republic Bank receiving financial help designed to prevent a crisis in the banking sector.[5]

First Republic Bank executives managed to sell stock right before the crash, two days before the Silicon Valley Bank implosion.[6] Since then, the bank’s customer base has “shrunk dramatically,” and the bank had about $180 billion in deposits heading into this year. 68% of these deposits exceeded the Federal Deposit Insurance Corp.’s insurance cap of $250,000, leading to an estimated $90 billion outflow from the bank.[7]

On March 15, First Republic had a cash balance of approximately $34 billion, excluding the $30 billion of uninsured deposits from major banks.[8] The bank has also borrowed tens of billions of dollars from the Federal Reserve and the Federal Home Loan Bank over the past week.[5] The move gives First Republic a significant cash pile, and outflows of deposits have now “slowed considerably.”[5]

0. “Why Is Credit Suisse in Trouble? The Banking Turmoil Explained” The Wall Street Journal, 17 Mar. 2023,

1. “Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, BNY Mellon, PNC Bank …” Business Wire, 16 Mar. 2023,

2. “FTSE 100: Stocks rise US banks deposit $30bn to rescue First Republic” Yahoo News, 17 Mar. 2023,

3. “Markets Today: Stocks Slip as Market Sentiment Remains Fragile” Barchart, 17 Mar. 2023,

4. “Credit Suisse shares hit as investor fears reignite” BBC, 17 Mar. 2023,

5. “Dow drops 400 points as First Republic’s slide rattles Wall Street: Live updates” CNBC, 17 Mar. 2023,

6. “First Republic Bank executives sold stock right before the crash” Markets Insider, 17 Mar. 2023,

7. “First Republic sees ‘gob-smacking’ deposit outflows; shares plummet after rescue package” Crain’s New York Business, 17 Mar. 2023,

8. “FRC Tanks after it Suspends Dividends” TipRanks, 17 Mar. 2023,